Action needed soon on whiplash claims, says AA

The Transport Committee has announced another inquiry into whiplash injury, calling for evidence on reducing the number and costs of whiplash claims.

This happens a full year after the insurance industry summit with Prime Minister David Cameron.
 
In addition, there is a further Ministerial summit with the insurance industry which will discuss whiplash reforms, taking place on 25 March at which the AA is participating.
 
While Simon Douglas, director of AA Insurance welcomed the Transport Committee's enthusiasm to understand the impact that whiplash injury claims is having on motor insurance premiums, he comments:
 
"It seems odd that it has taken a year to announce this inquiry, at a time when a separate Justice Ministry inquiry (‘Reducing the number and costs of Whiplash Claims') appears to have covered similar ground and has just closed."
 
The new inquiry is looking to find out whether assumptions made about whiplash injury claims are correct and whether proposals put forward by the Government in relation to medical evidence are likely to reduce insurance premiums.
 
"In my view, while there is clearly a need to bring the escalating number of often-spurious claims under control, there are steps that could usefully help - for example, fixed rates of compensation and a proportion of claims payment withheld and paid direct for treatment, such as physiotherapy.  Similarly, historic claims should reflect the cost of treatment that sufferers have, or should have, undertaken."
 
Mr Douglas says that he is also in favour of a system used in Germany and Austria, where collisions below a certain speed (assessed by expert analysis of vehicle damage) are deemed to be too low to result in whiplash injury.
 
"And, while welcoming the concept of an independent panel to assess whiplash cases, it's hard to see how they might come to a different diagnosis from that of a GP if such injury can't be confirmed from conventional medical tests."
 
Mr Douglas also said the civil justice reforms being introduced in April will go some way towards reducing personal injury claims costs.  These include rebalancing no-win no-fee deals so that losing defendants no longer have to pay success fees to the claimant's lawyer; banning ‘referral fees' and stopping claims management companies from offering inducements to make claims through them.
 
"All these are steps in the right direction.
 
"But there has been endless talking on this issue and it's hard to see how a further inquiry will add to the knowledge already amassed."
 
The AA however, expects to make a written submission to this latest inquiry.